Fed minutes show tariffs factored into concerns about higher inflation
Published On Feb 19, 2025, 4:11 PM
The Federal Reserve's recent meeting minutes indicated concerns about potential tariffs contributing to inflationary pressures. Policymakers noted that rising tariffs could lead to higher costs for businesses, which may in turn be passed onto consumers, exacerbating inflation. While the Fed anticipates a decrease in inflation towards its 2% target, the possibility of new tariffs and other factors could hinder this process, suggesting higher-than-expected inflation risks in the future.
Stock Forecasts
SPY
Negative
As rising tariffs may increase input costs that companies will pass on to consumers, inflation could persist longer than expected. This may push the Fed to reconsider interest rate policies.
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